Category: Stock Market

ASX 200 ends the day higher, EML share price rises another 12%
The S&P/ASX 200 Index (ASX: XJO) ended the day higher by 0.24% to 5,573 points after being down in the morning.

The New South Wales government is now encouraging people to visit regional NSW in another sign of areas of the country opening up.

Strongest ASX 200 performance

The biggest rise within the ASX 200 belonged to EML Payments Ltd (ASX: EML). The EML share price went up 12% today.

It gave a trading update which included solid growth in certain sections of the business. While the gift & incentive section is suffering, other areas are still growing nicely.

Despite everything that’s going on the company managed to generate $2.7 million of earnings before interest, tax, depreciation and amortisation (EBITDA) including the PFS acquisition. It ended April 2020 with $125 million of cash.

Australian Agricultural Company Ltd (ASX: AAC) moo-ves upwards

The cattle company announced its FY20 report today.

AAC announced that Wagyu beef sales were up 20% after price and volume growth. The company generated an operating profit of $15.2 million compared to a loss of $22.9 million last year.

It managed to generate its strongest operating cashflow in three years of $20.1 million.

AAC said that COVID-19 had a negligible impact on FY20 results, the impact on FY21 is uncertain and couldn’t be reasonably estimated.

The business saw its share price rise 12.8% today.

Fletcher Building Limited (ASX: FBU) lets go of some workers

Fletcher building provided a COVID-19 update today.

It recorded an earnings before interest and tax (EBIT) loss of around $55 million in April, which excludes significant items. The loss was made in New Zealand whereas Australia was a breakeven result.

As a result of the difficult conditions, Fletcher Building is reducing its workforce by around 10% which equates to around 1,000 jobs in New Zealand and another 500 in Australia.

The share price of the construction company dropped 2.8% today.

One “All In” ASX Buy Alert, that could be one of our greatest discoveries

Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia has recommended Emerchants Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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20 May 2020
Investing $1,000 in these 3 ASX shares would be a smart move
If you’re looking to invest $1,000 into the share market right now, then there are a lot of quality options to choose from.

Three ASX shares that I think would be smart choices are listed below. Here’s why I like them:

Jumbo Interactive (ASX: JIN)

Jumbo Interactive is an online lottery ticket seller and the operator of the Oz Lotteries website. In addition to this, the company has a Software as a Service (SaaS) business, Powered by Jumbo Software. This is the most exciting part of the business in my opinion. The total addressable market for its SaaS business is significant. Last year management noted that approximately 7% of the world’s lottery tickets are sold online, which implies that 93% of a ~US$300 billion global market has yet to transition online. I suspect a greater portion of ticket sales will be made online in the future and for its SaaS business to underpin strong earnings growth over the next decade.

REA Group Limited (ASX: REA)

Another option for a $1,000 investment is REA Group. It is the operator of the realestate.com.au website and several international equivalents. Although the housing market is struggling at the moment, this has not stopped the company from growing its earnings. During the third quarter it delivered an 8% lift in EBITDA to $119.6 million despite dealing with a 7% decline in listings. And while listings in the fourth quarter are likely to be markedly lower, its cost cutting plan should offset some of this weakness. Looking further ahead, when conditions improve I expect REA Group’s earnings growth to accelerate and drive its share price higher.

Zip Co Ltd (ASX: Z1P)

A final option to consider is growing buy now pay later provider, Zip Co. There were concerns that Zip Co’s business model could struggle if trading conditions deteriorated materially. Pleasingly, this hasn’t proven to be the case. The company recently released a trading update which revealed that transaction volume jumped 86% to $181.6 million in April. But perhaps the even better news was that its net bad debts came in at just 1.99%. This is higher than previously, but at a very strong level compared to many of its peers. I’m confident its strong growth will continue over the coming years. Especially given its new verticals, international expansion, and the growing popularity of the payment method with consumers and merchants.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended Jumbo Interactive Limited and REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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20 May 2020
These are the latest ASX shares to be downgraded by top brokers
Warnings from some experts about overvalued share prices aren’t enough to keep our market down!

The S&P/ASX 200 Index (Index:^AXJO) reversed its morning losses and is trading 0.4% higher as we head into the close.

Our market may have gotten a tat too excited about the COVID-19 economic recovery, but I don’t think that in itself will send the ASX 200 into a new bear market – at least not in the shorter-term.

But the air of optimism hasn’t stopped brokers from downgrading their recommendations on a handful of ASX stocks.

Not ‘Appening anymore

One stock that might be looking maxed out is tech darling Appen Ltd (ASX: APX), according to Credit Suisse.

The broker lowered its rating on the stock to “neutral” from “outperform” despite the artificial intelligence product developer’s upbeat trading update.

Appen highlighted a robust demand outlook, increasing use of its products across various industries and growing efficiencies in its business.

“Our rating downgrade is primarily a function of share price rather than change in thesis,” said Credit Suisse.

“In March APX was trading 26x consensus 12-month forward P/E vs 42x currently, and its share price is now near an all-time high.

At these levels in our view an upgrade is required to support further share price appreciation, although in the current environment, it may be more challenging to achieve.”

The broker’s price target on Appen is $30 a share.

Playtime over

Another stock that’s issued good news but is hit by a downgrade is Baby Bunting Group Ltd (ASX: BBN).

Citigroup cut its recommendation on the baby products retailer to “hold” from “buy” after management reported strong like-for-like (LFL) sales growth.

This may be due to shoppers stockpiling essentials, like diapers, and pre-orders from consumers worried about delays in getting products.

But despite the good results, Citigroup thinks Baby Bunting’s margins will come under pressure from a sales shift towards skinnier margin consumable products and higher freight costs from online orders.

“We expect outperformance relative to the broader retail sector to slow as more discretionary segments outperform as the Australian lock down is eased, and consumer stockpiling unwinds,” said the broker.

“We see the FY21e PE of 17x, a 9% premium to peers, as fairly reflecting the rewards and risks.”

Citi’s price target on the stock is $3.35 a share.

Losing its shine

A bullish outlook for the gold price isn’t enough to keep Evolution Mining Ltd (ASX: EVN) on Morgan Stanley’s buy list.

The broker chopped its rating on the gold miner to “equal weight” (equivalent to “hold”) from “overweight”.

While the outlook for the precious metal is positive due to the uncertain economic environment from COVID-19 and negative bond yields, Evolution is starting to look fully priced compared to its peers.

“In the last year, our gold coverage’s average forward 12m EV/EBITDA has fallen ~13% to 6.3x, and are trading an average of 7% below three-year averages,” said Morgan Stanley.

“If we assume our coverage returns to respective peak multiples of 7-11x, we find 30% upside for all but EVN.”

The broker’s price target on Evolution Mining is $4.70 a share.

One “All In” ASX Buy Alert, that could be one of our greatest discoveries

Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

Find out the name of Scott’s ‘All in’ Buy Alert

More reading
Motley Fool contributor Brendon Lau owns shares of Evolution Mining Ltd. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These are the latest ASX shares to be downgraded by top brokers appeared first on Motley Fool Australia.

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20 May 2020
Luckin’s Stock Faces Wipeout in Rush to Sell Before Delisting

(Bloomberg) — Luckin Coffee Inc.’s battered stock faces a renewed wave of selling on Wednesday, after Nasdaq Inc. said it planned to delist the onetime market darling that shocked investors with revelations of accounting fraud last month.The Chinese coffee chain’s shares, which have been suspended since tumbling more than 80% in early April, will resume trading at 7 a.m. in New York. Luckin announced Nasdaq’s intention to delist the company in a statement on Tuesday, saying shares will remain on the exchange pending the outcome of an appeal hearing.The prospect of delisting is likely to trigger a rush for the exits by Luckin’s remaining shareholders, adding to a long list of challenges for the company as it tries to recover from its disclosure that senior executives fabricated about $310 million in sales. Banks including Credit Suisse Group AG, Morgan Stanley and Goldman Sachs Group Inc. are among those with money at stake, after the firms seized control of shares that Luckin’s chairman had pledged as collateral for loans.“I can’t see what else investors would do other than dump the stock,” said Hou Anyang, a fund manager at Frontsea Asset Management Co. in Shenzhen.Luckin’s dramatic fall from grace has made the company a poster child for concerns about Chinese corporate governance, fueling a debate in Washington over the extent to which American money and capital markets should be intertwined with a growing geopolitical rival.President Donald Trump said last week he’s “looking at” Chinese companies that don’t follow U.S. accounting rules, while his administration moved to stop a federal retirement savings fund from investing in the Asian nation’s stocks. Nasdaq is planning new rules that would make initial public offerings more difficult for some Chinese companies.Nasdaq Set to Tighten Listing Rules, Impacting Chinese IPOs Luckin Chairman Lu Zhengyao said in a statement that he’s “deeply disappointed” Nasdaq is moving to delist before the company releases final results of an internal probe into its accounting.“Luckin has reacted actively according to the initial results of the investigation, including terminating some relevant management and restructuring the board,” Lu said.“My personal style may have been too aggressive and led the companies to run too fast, which has triggered many problems,” Lu continued. “But I never lied to investors with the idea of ‘selling concepts.’ I’m working hard to make the company bigger and better to create value for society.”A Luckin representative declined to comment on the stock price. The company had a market value of about $1.1 billion based on its closing level April 6.While Luckin’s stores are still operating and the company is opening new outlets, its offices in China were raided by authorities last month as part of a multi-agency investigation into its finances. Luckin fired its chief executive officer and other senior leaders last week.Read more: Luckin Coffee Still Expanding Full Steam Despite Sales ScandalIn its letter to Luckin on the delisting plan, Nasdaq cited “public interest concerns as raised by the fabricated transactions disclosed by the Company” and “past failure to publicly disclose material information.”Car Inc., the auto-rental company founded by Lu whose stock has slumped in the wake of the Luckin scandal, dropped as much as 3.8% in Hong Kong on Wednesday. Its dollar bonds were little changed, as were Luckin’s convertible notes, according to Bloomberg-compiled prices.The anticipated selloff in Luckin shares on Wednesday may also spread to other U.S.-listed Chinese companies, though some of those losses could create buying opportunities, said Sun Jianbo, president of Beijing-based China Vision Capital.“As a Chinese firm which will cease to list on the U.S. market, Luckin will be virtually worthless to American investors,” Sun said. “It’d also be a sentiment shock to other Chinese ADRs, but may create bottom-fishing opportunities for some investors.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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20 May 2020
AUD/USD Forecast: At Two-Month Highs And Bullish: 5/19/2020

* China announced tariffs on Australian goods as retaliation over coronavirus origins' investigation. * Australia will publish this Wednesday the Westpac Leading Index for April. * AUD/USD holding on to gains and with room to keep advancing.The AUD/USD pair surged to 0.6584, a level that was last seen on March 10. Commodity-linked currencies were the best performers against the greenback, despite the sour tone of equities. Even further, the Aussie rallied despite an early slump, triggered by news coming from China. The Asian giant imposed punitive tariffs of more than 80% on barley imports from Australia, and market talks suggest that the movement could extend to wine, seafood, and dairy. The move was a response to the Australian call for an investigation into the origin of the coronavirus.The Reserve Bank of Australia released the Minutes of its latest meeting, which included no surprises. Policymakers are concerned about the unprecedented economic contraction triggered by the coronavirus pandemic, although they are also confident about the measures taken to bare with it. During the upcoming Asian session, the country will publish the Westpac Leading Index for April, previously at -0.85%.AUD/USD Short-Term Technical Outlook The AUD/USD pair is trading near the mentioned high in the 0.6560 regions as the day comes to an end. The 4-hour chart shows that it continues to develop above all of its moving averages, with the 20 SMA crossing above the 100 SMA, both around 0.6480. Technical indicators continue to head higher near overbought readings, all of which maintain the risk skewed to the upside.Support levels: 0.6530 0.6490 0.6455Resistance levels: 0.6585 0.6610 0.6645Photo from Pixabay. See more from Benzinga * EUR/USD Forecast: Still Aiming To Test The 1.1000 Threshold: 5/19/2020 * AUD/USD Forecast: About To Challenge This Month High, Bullish * EUR/USD Forecast: Turned Short-Term Bullish May Near The Critical 1.1000 Level(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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20 May 2020
$3,000 invested in these 3 ASX industries could make you a fortune in the future
When it comes to investing in the ASX, I always prefer to look well into the future. Markets like the S&P/ASX 200 Index (ASX: XJO) already operate based on many forward-looking mechanisms.

But in order to outperform the market over the long-term, you sometimes have to be bolder than the market. This is particularly true when it comes to contemplating how the economy will function in 1, 5 or even 10 years’ time.

So what are the ASX future fortune-making industries?

With this in mind, here are 3 ASX industries I think will be alive and thriving for the foreseeable future and beyond! I think if you invest $3,000 in any of these industries, you have a strong possibility of making a fortune over the next decade.

Healthcare

Healthcare is the very definition of an evergreen industry. Until humanity discovers the elixir of life (not too likely in my view), we’re always going to need medical services and supplies. Furthermore, Australia (along with most of the world’s advanced economies) has an ageing population. This alone should ensure a decades-long tailwind for the healthcare sector.

Luckily, the ASX is full of quality companies that operate in this space. Private hospital operator Ramsay Health Care Limited (ASX: RHC) is one such company. Ramsay has a massive portfolio of well-regarded private hospitals in Australia as well as around the world.

CSL Limited (ASX: CSL) is another consistent winner, as is Cochlear Limited (ASX: COH) and, more recently, Polynovo Ltd (ASX: PNV). Plenty of choices here!

Software-as-a-Service (SaaS)

Software-as-a-Service is a relatively new business concept. This is because it is only enabled by the pervasiveness of the internet and by the cloud infrastructure that now underpins it. But this doesn’t mean it’s not a great place to invest for growth over the coming decade.

Many ASX SaaS companies have already delivered substantial fortunes for their investors on the back of surging share prices over the last few years. Investors have been especially attracted to companies committed to aggressive expansion plans and long-term, strategic outlooks. Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) are two such examples. Despite the fact both companies’ share prices have rocketed over the past couple of years, I still think this space remains primed for massive growth down the road. I believe this growth is likely to be enjoyed by the ASX’s existing SaaS key players as well as some possible new entrants.

ASX resources

Although this sector is somewhat boring when compared with the first two on my list, I do believe it has the potential to make investors sizeable amounts of money over the coming decade. Whilst some might argue resources is an ‘old-world’ industry, the fact remains that almost all facets of the economy still rely on one resource or another – whether it be steel, copper or aluminium.

And I believe there’s still room for future growth too. The economy of tomorrow is probably going to be less fossil-fuel focused (hopefully) and more reliant on resources used in electronics. Things like silver, lithium and cobalt. Thus, smaller resources players like Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS) could currently be worth investing in for long-term growth potential.

Foolish takeaway

Whilst it’s easy to become obsessed with the coronavirus-led volatility in the market right now, no one can predict what ASX shares will do in the immediate future. I believe, a smarter approach is to focus on the decades ahead and consider investing in ASX industries that are well positioned for long-term, future growth.

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Sebastian Bowen owns shares of Ramsay Health Care Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., and Xero. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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20 May 2020
Down 10% in 2 months. Are Coles shares a buy today?
The Coles Group Ltd (ASX: COL) share price is down around 10% over the past two months.

Coles shares are today trading at $15.23 at the time of writing. Seeing as Coles shares were over $17 back in March, is this a buying opportunity for this ASX consumer staples giant?

Why are Coles shares falling?

Since mid-March, the broader S&P/ASX 200 Index (ASX: XJO) has surged over 22% in value. In this period, Coles’ share price has gone backwards. So what’s going on?

Well, Coles shares were one of the few stocks that investors were flocking to during March. Investors were evidently drawn to the company’s defensive qualities and were responding to the panic buying of essentials we saw across the country at the time.

Today, the situation is remarkably different.

The initial bump in revenue Coles experienced during the first quarter of 2020 has likely evaporated. We know this because just today, the Australian Bureau of Statistics released its April retail data, which found food retail spending fell by 17.1% in April, compared with March.

Meanwhile, most of the additional spending Coles has had to implement recently on safety equipment and extra store sanitisation looks like it’s here to stay for at least the remainder of 2020. Coles also employed a massive number of new staff over the last few months, which is another cost the company has to absorb.

Are Coles shares a buy today?

Coles shares certainly look a lot more attractive than they did two months ago, but I’m still not convinced they’re a screaming bargain on today’s prices. This is a company that I don’t think will see significant growth over the next few years. Its ‘Smarter Selling’ cost-cutting program has also had a major wrench thrown into it by the coronavirus.

In saying that, dividend income is hard to find on the ASX these days and so I think Coles shares have a lot of merit from an income investing perspective. On current prices, Coles shares are offering a trailing dividend yield of 2.76%, or 3.94% grossed-up with full franking.

That’s a lot better than a term deposit or a non-existent dividend from Westpac Banking Corp (ASX: WBC).

Foolish Takeaway

Coles is a good business with strong fundamentals and many attractive defensive qualities, which it certainly showed off during the market panic we saw in March with aplomb. I wouldn’t buy this company for its future growth prospects, but I think Coles shares remain a sound choice for reliable ASX dividend income today.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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20 May 2020
Is the Webjet share price a buy?
Is the Webjet Limited (ASX: WEB) share price a buy?

Just over a week ago I looked at whether the Webjet share price was a buy. I concluded it seemed cheap if travel can return sooner rather than later. Since then it’s gone up about 12% in a week – that’s a quick return if you bought at the time!

I wasn’t expecting it to make such a quick double digit return. So I thought I’d revisit my thinking on the Webjet share price. Investment thoughts can change if something goes up or down over 10% in such a short time.

Why I was feeling bullish

The company raised around $350 million in a capital raising which is being used to strengthen the balance sheet because of the travel restrictions that are in place globally due to the coronavirus. I think this puts the business in a much stronger position compared to a lot of its travel peers – Webjet should be able to easily survive to December 2020 even if strict restrictions remained. That alone was a boost to the Webjet share price.

But the restrictions are lifting much earlier than expected. I believe international travel is nowhere close to coming back yet though. But the possibility of domestic travel has been brought forward with some other restrictions ending. The NSW government has said that people will be able to visit regional NSW. I think that’s very promising that domestic bookings could start again sooner rather than later.

I think Webjet also has an advantage in that it delivers its service online. That means it has a lower cost base and customers will still be able to access all of the options, it’s not like a closed physical travel agent shop.

Is the Webjet share price a buy now?

After a quick 12% rise from around a week ago I think I’d be inclined to take profits off the table today. The share market has returned an average of 10% a year over the decades, so making 12% in a week is an attractive return and I’m cautious about investors expecting too much from Webjet this year.

Hopefully it can keep rising and I still believe it could be a solid performer over the next 5 to 10 years, but taking profits off the table today wouldn’t be a terrible decision.

It could be a great idea to consider some other ASX shares which are still trading cheaply.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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20 May 2020
Aussie retail numbers paint a gloomy ASX picture
We all knew the Australian retail numbers for April 2020 would be bad. The coronavirus pandemic and subsequent economic shutdowns have literally closed thousands of shops and businesses around the country since March. For a few weeks, many Australians weren’t allowed to step foot into shopping centres.

But it’s always sobering when reality replaces the hypothetical and that’s just what has happened today.

This morning, the Australian Bureau of Statistics (ABS) released its official retail data for the month of April and the numbers weren’t too good.

A gloomy month for Aussie retail

According to the ABS, Australian retail turnover fell 17.9% in April 2020. That number is seasonally adjusted too and it’s the largest fall ever recorded by the ABS. Compared with April 2019, Aussie retail turnover was down 9.4%.

The ABS reports that every single industry reported falls, with food retailing; cafés and restaurants and clothing, footwear and personal accessories sectors hit the hardest. Turnover in these sectors was “around half the level of April 2019.”

Particularly of note was food retailing, which fell 17.1% in April following a strong rise in March. It appears consumers have stopped buying/hoarding record amounts of non-perishable food and household essentials that we saw in March when the extent of the coronavirus became apparent.

What do these numbers mean for ASX shares?

Unfortunately, there’s not a lot of good news for ASX investors in these numbers. Of course, most of us were expecting extremely dire numbers for April, but seeing them in the flesh isn’t a fun exercise, especially for anyone holding shares of retail-exposed companies, especially for shopping centre REITs like Scentre Group (ASX: SCG).

It’s not good news for shareholders of Coles Group Ltd (ASX: COL) or Woolworths Group Ltd (ASX: WOW), either. It shows that the panic buying that we saw in March was a ‘flash in the pan’ kind of scenario, and I don’t expect the new trends that we see in April to reverse for Coles and Woolies for the rest of the year.

I would suggest keeping on eye on the figures for May and June (once they’re released) for a clearer indication of what the future holds. April’s numbers were always going to be bad because consumers legally had to stay at home unless buying essentials. But it’s the figures that detail how Australians are shopping when we actually have the freedom of doing so that will really paint the picture of what the rest of 2020 has in store.

For some shares we Fools think have upside potential instead, take a look at the report below!

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Aussie retail numbers paint a gloomy ASX picture appeared first on Motley Fool Australia.

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20 May 2020
$2,500 invested in these 3 ASX shares could make you a fortune in 10 years
According to research by Fidelity, as of the end of 2019, the S&P/ASX 200 Index (ASX: XJO) had generated an average total return of 9.2% per annum over the last three decades.

While the current decade has got off to a bad start, I expect the share market to rebound and generate a similarly strong return over the next 10 years.

But you don’t have to settle for the market return. I believe there are a large number of quality shares on the local share market with the potential to outperform the market.

As a result, if you are able to make regular investments into their shares over the period, you could end up with a small fortune.

For example, a $2,500 annual investment for 10 years into a share earning a total return of 11.7% per annum (2.5% greater than the market average) would grow into just under $50,000.

Of course, the more you invest, the greater the potential return. If you can afford to invest $3,000 each year, your investments would be nearing $60,000 after 10 years. If you can put $10,000 in, you’re looking at almost $200,000.

But which shares could beat the market over the next 10 years? Three that I think have the potential to be market beaters are listed below:

Appen Ltd (ASX: APX)

The first option to consider is Appen. As a leading developer of high-quality, human annotated datasets, its looks exceptionally well-positioned to benefit from the machine learning and artificial intelligence (AI) boom. Especially given its leadership position in the industry and its relationships with some of the world’s biggest tech companies. I expect demand to grow over the next decade and underpin strong earnings growth.

Kogan.com Ltd (ASX: KGN)

Another option to consider is Kogan. It is a growing ecommerce company which looks well-positioned for long term growth thanks to the shift to online shopping. At present approximately 10% of all retail spending is made online. I expect this to increase over the next decade and for Kogan to continue growing its market share and ultimately its earnings.

ResMed Inc. (ASX: RMD)

Finally, I think this sleep treatment-focused medical device company’s shares could be market-beaters over the next decade. This is due to its industry-leading products and massive market opportunity. Management estimates that there are 1 billion people impacted by sleep apnoea worldwide. But with only ~20% of these sufferers being diagnosed, it should have a long runway for growth.

And named below is a fourth option that could provide investors with very strong long term returns. No wonder this leading analyst is urging investors to go all in with it…

One “All In” ASX Buy Alert, that could be one of our greatest discoveries

Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post $2,500 invested in these 3 ASX shares could make you a fortune in 10 years appeared first on Motley Fool Australia.

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20 May 2020